PwC, the accounting firm, is telling junior staff in the UK to prepare for smaller pay increases this year due to the “challenging” conditions of the market.
Pay and bonuses will be frozen at last year’s levels for one selection of junior auditors, while others will only receive an increase of between 3% and 6%, a company webcast told workers last week.
In real terms, this means a pay cut for the workers in question due to inflation reaching 8.7% in May.
It puts PwC in direct conflict with UK regulator, the financial reporting council, whose chair has called for increased pay in order to attract young recruits.
Last year, record increases were given out by PwC to hold onto workers in the face of an overpopulated labour market and soaring inflation.
Now junior auditors are considering quitting, one worker said they were “shocked”, according to the Financial Times.
Earlier this week, the company put its scandal-ridden Australian arm up for sale for just 50p.